Wacker Chemie AG: WACKER reports sales for Q1 at prior-year level amid weak market environment

Munich, April 30, 2025

München (pta008/30.04.2025/07:00 UTC+2)

• Group sales for Q1 on a par with the prior-year level at €1.48 billion and up 11 percent quarter over quarter
• Silicones division and biotechnology business start the year off well; positive development for semiconductor-grade polysilicon; downward trend for solar-grade polysilicon
• EBITDA at €127 million, down on previous year primarily due to lower solar-grade polysilicon volumes
• Earnings generated by operating segments trend as expected
• Net income for Q1 amounts to €-3 million
• Full-year forecast unchanged
• Repercussions of tariff conflicts on economic growth cannot be reliably determined at present

Munich – Wacker Chemie AG reported sales for Q1 2025 on a par with the prior-year level totaling €1.48 billion (Q1 2024: €1.49 billion) and up 11 percent on the previous quarter (Q4 2024: €1.34 billion). Both the Silicones division and the biotechnology business started the year off well in terms of sales. The Polymers division saw its sales reduce slightly. Polysilicon business declined compared with the previous year primarily due to significantly lower solar-grade polysilicon volumes.

The Group's EBITDA (earnings before interest, taxes, depreciation and amortization) amounted to €127 million (Q1 2024: €172 million), down 26 percent year over year. The downturn was mainly driven by lower solar-grade polysilicon volumes, inventory effects and, in some cases, lower plant-utilization rates. EBITDA in the chemical divisions increased overall compared with the previous year. The EBITDA margin for January through March 2025 was 8.6 percent (Q1 2024: 11.6 percent). In the prior quarter, it was 20.9 percent.

Due to the factors described above, EBIT (earnings before interest and taxes) declined year over year in Q1 2025 to €0.4 million (Q1 2024: €63 million), corresponding to an EBIT margin of 0.0 percent (Q1 2024: 4.2 percent). Net income in the reporting quarter amounted to €-3 million (Q1 2024: €48 million). This corresponds to earnings per share of €-0.16 (Q1 2024: €0.89).

President & CEO Christian Hartel: "We started the year off well"
"Given the persistently weak market environment, we started the year off well. We are in line with our expectations," said Christian Hartel, President & CEO of Wacker Chemie AG, commenting on earnings for the first quarter of the year. "Weak economic conditions continue to impact the ordering behavior of many customers. What is more, current US trade policy has caused considerable uncertainty on the markets in recent weeks." There was some sluggish demand - as seen in the construction industry – as a result. He added that WACKER's Polymers business performed relatively well in Q1 when bearing this in mind. The division's sales were only slightly lower than the previous year. "Our Silicones business has seen strong performance over the past few months with an uptick in sales and earnings." Hartel added that strategically focusing on specialty business — meaning products and solutions that offer customers added value thanks to their outstanding properties — has proven worthwhile. They are generally developed on a customer-specific basis, have a longer value added chain and achieve higher margins. Sales in the biotechnology business for Q1 2025 were also higher than the year before. According to Hartel, solar-grade polysilicon activities in the Polysilicon division remain challenging by contrast. This is due to overcapacity in China and ongoing uncertainty in the market from discussions surrounding punitive tariffs. As a result, solar-grade polysilicon volumes sold were significantly below the previous year. "By contrast, our hyperpure semiconductor-grade polysilicon business performed very well. This is an area in which we are the global market and quality leader, and we are continuing to expand both our capabilities and our capacities," emphasized the CEO.

Regions
In Q1 2025, WACKER generated 83 percent of its sales outside Germany and 17 percent in Germany. In the Americas, sales rose 9 percent in the reporting quarter to €280 million (Q1 2024: €258 million). Sales in Europe reached €600 million (Q1 2024: €573 million), up 5 percent year over year.By contrast, the trend in Asia was downward with sales totaling €510 million, down 11 percent on the previous year (Q1 2024: €573 million).

Capital expenditures and net cash flow

At €93 million, the Group's capital expenditures in Q1 2025 were lower than a year earlier (Q1 2024: €117 million). WACKER's investment focus was on expanding capacity in its four business divisions. One such example in the Silicones division is the current expansion of the Zhangjiagang site in China. Another is the new site being set up for specialty silicones in Karlovy Vary, Czech Republic. At the Polymers division, one of the capacity-expansion projects is for VAE dispersions in Calvert City, USA. By the middle of the year, WACKER's Polysilicon division will be bringing a new facility for producing semiconductor-grade polysilicon on stream in Burghausen, Germany.

Net cash flow for Q1 2025 amounted to €-167 million, primarily decreasing as a result of the lower EBITDA compared with the previous year (Q1 2024:
€-126 million).

Employees

WACKER's global workforce remained largely unchanged in the reporting quarter. The Group had 16,655 employees on March 31, 2025 (December 31, 2024: 16,637). of which 10,695 employees were at WACKER's sites in Germany (December 31, 2024: 10,657) and 5,960 at its international sites (December 31, 2024: 5,980).

Business divisions

The Silicones division increased its sales and EBITDA in Q1 2025. Sales came in at €745 million, up 5 percent year over year (2024: €710 million). EBITDA was €108 million (Q1 2024: €81 million), 33 percent more than a year earlier. This development was driven mainly by an improved product mix, with a significantly higher proportion of specialty products. Sales volumes of products for the health sector were one example of growth in the first quarter. WACKER products here include silicone adhesives for wound care. Sales volumes of silicones for high-performance LEDs and displays as well as for adhesive labels were also higher.

At Polymers, sales and EBITDA in Q1 were down year over year. Sales decreased slightly by 3 percent to €360 million (Q1 2024: €372 million). At €37 million, EBITDA was down 34 percent on the prior-year level (Q1 2024: €56 million). Business here was impacted by the persistently weak construction sector — especially in China. Volumes and prices declined slightly year over year. What is more, earnings were also dampened by weaker capacity utilization at some plants as well as by inventory effects.

Q1 sales in the Biosolutions division were higher than prior-year figures, increasing 27 percent to €91 million (Q1 2024: €72 million). The positive sales trend was bolstered primarily by growth in the biopharmaceutical business. At €5 million, EBITDA was on par with the previous year (Q1 2024: €5 million). Prior-year quarter EBITDA benefited from a particularly solid mix of products and customer projects.

The Polysilicon division saw both sales and EBITDA in Q1 decline. Sales decreased 18 percent to €245 million (Q1 2024: €300 million). EBITDA was 32 percent lower at €29 million (Q1 2024: €43 million). This reduction was primarily prompted by lower solar-grade polysilicon volumes sold. By contrast, the hyperpure semiconductor-grade polysilicon business performed well.

Outlook for 2025 confirmed
The forecast for 2025 remains unchanged and, accordingly, the company expects sales in all regions and business divisions to increase. Selling prices in the current year are likely to be slightly below the previous year while volumes are set to increase considerably – particularly for specialty products in the chemical divisions and at Polysilicon. Overall, WACKER expects Group sales to range between €6.1 billion and €6.4 billion, EBITDA is predicted to come in between €700 million and €900 million, with an EBITDA margin at the prior-year level.

It must be noted that developments in international trade relations, particularly the current tariff conflicts, pose a considerable risk for economic growth. The repercussions of these conflicts on the global economy and on WACKER's business cannot be reliably determined at present. For this reason, WACKER's forecast remains unchanged.

CEO Christian Hartel explained that, in view of growing market uncertainties, WACKER will continue to focus on further strengthening its resilience. "To grow further, we are concentrating on gaining attractive new business and ensuring ongoing capacity utilization. We are also working diligently on our cost positions. We are driving ahead with efficiency, process and structural improvements, and leveraging digitalization as well as other tools to do so." The CEO emphasized that WACKER remains on track in the medium- to long-term. "We are well-positioned financially and strategically and we are benefiting from global megatrends. Whether it is renewable energy, electromobility or digitalization, these trends will continue to drive our business."

Further details on the outlook for 2025 can be found in the Outlook section of the WACKER Annual Report 2024.

Key figures for the WACKER Group

[1] EBITDA is EBIT before depreciation and amortization.

[2] Margins are calculated based on sales.

[3] EBIT is the result from continuing operations for the period before interest result and other financial result, and income taxes.

[4 ]Intangible assets, property, plant and equipment, investment property, excluding right-of-use assets.

[5] Sum of cash flow from operation activities and cash flow from long-term investing activities (before securities).

[6] Sum of cash and cash equivalents, noncurrent and current securities, and noncurrent and current financial liabilities.

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Emitter:	Wacker Chemie AG Gisela-Stein-Straße 1 81671 München Germany
Contact Person:	Manuela Dollinger
Phone:	+49 89 6279 1629
E-Mail:	manuela.dollinger@wacker.com
Website:	www.wacker.com
ISIN(s):	DE000WCH8881 (Share)
Stock Exchange(s):	Regulated Market in Frankfurt; Free Market in Berlin, Dusseldorf, Hamburg, Hannover, Munich, Stuttgart, Tradegate